Sony and Honda are pulling the plug on their AFEELA electric vehicle project. The joint venture, known as Sony Honda Mobility (SHM), confirmed today that it will “discontinue the development and launch of its first model, AFEELA1, and its second model.”
The partnership was originally formed in September 2022 to combine Sony’s software and entertainment expertise with Honda’s automotive manufacturing. However, a major shift in the EV market has forced both companies to reconsider. People aren’t buying EVs like they used to it seems when government tax credits and rebates aren’t available.
The decision follows a massive pivot by Honda. According to the joint statement, “as a result of Honda’s reassessment of its automobile electrification strategy announced on March 12, 2026 and factoring the changes to the EV market, the underlying assumptions of SHM’s business operations” were “fundamentally altered.”
The AFEELA brand was designed to be a tech-first vehicle, featuring huge panoramic screens, PS5 integration, and more than 40 sensors for autonomous driving. By moving away from traditional performance metrics, Sony and Honda hoped to “develop and sell high value-added mobility products” by “combining the technologies, expertise, and development capabilities of Sony and Honda.” Whatever that was supposed to mean.
While the current cars are dead, the partnership itself hasn’t been completely dissolved yet. The companies have “determined to review SHM’s business direction” and will continue to evaluate the future of the venture.
The groups “intend to jointly announce SHM’s future direction, mid to long-term positioning as well as contributions to the future of mobility at the earliest possible opportunity.” For now, the dream of a Sony-branded car on the road has been indefinitely delayed.
The companies started taking reservations in January 2025 in California and were slated to start deliveries in “late 2026”.
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